Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
# Q2 o! {. ~8 l( ?" kexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
/ J$ }' |- J) Ethese oil producer will go bankrupt or out of the business even if
) S7 p: |) v9 I  Ycrude prices improves. This implies also to good names such as Shell,
  J& @" |4 I) s4 \6 NEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
6 i( D  U6 O' A7 v( k  b' j1 ^A year ago these things would have spiked the price of crude oil by at
$ N- F& I$ `+ N" }least $50.00 per barrel. Today, oil price declined by a record amount.


7 a" }+ r& S- `0 C% |There are several reasons the price of oil is decreasing in the face
8 {. h% l0 x5 i5 a9 qof so much news. These reasons are:
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! B1 X, c8 }" d: C- s1. New oil has been found in Canada, Montana, North & South Dakota and
: {! o: y7 P* }. L9 sin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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+ ?- {+ e( M; t/ d. F2. New natural gas has been found in Pennsylvania and West Virginia.
+ A; J" U' \' ~( E! \; LThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
) J6 C! V2 F; l' xbeing used to double their output.
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7 C+ i* @. }! G0 g4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
# x1 `+ M$ }/ Lpotential per acre in some cases is astounding. Many countries are
! ?. Q5 |* k: }  Nracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
+ ?$ f8 v1 e1 E( P0 i2 c" rconstruction around the world at this time. Several hundred more are
4 n! R, T6 E5 F* j# S' y# rexpected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
& H9 T4 t; L7 n: r5 ]7 Kwith new more fuel efficient equipment. Airlines and railway companies
) K) M% ~+ l2 m; _$ o( tare experiencing 20% to 25% better fuel econony with the new
+ A# r4 o* ]5 k/ o7 e  kequipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
9 v: l2 U6 `7 ^3 Y2 u) V  Hfuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
; o) Y2 Q) T9 f( Y1 jcapture methane gas from landfills. This is a huge source of gas
4 A" P6 T4 a( {& r6 d% davailable at very little cost or risk. The gas is displacing crude
- A' D4 U; W. @+ Xoil.


* L( {4 [& k1 M1 Y7 N* V9. Coal is being transformed into a clean burning liquid fuel. The CO2
( N2 P8 V1 `$ d* j, Dproduced as a byproduct is sold to oil companies for injection into
, ^& O1 @% D8 ]9 H* eoil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


8 ]6 G2 a  z5 S- wEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
, V7 W; t+ D0 o7 t& ^- Jchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
  O, U/ x* R) _8 J! n' ]. BIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
7 z6 V( z7 m& i' N# ]: z' U' A2009 ... FYI-Only